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Summary of the
Implementing the Embedded Generation Rule Change Report
Background
In October 2014, new electricity market rules commenced which were intended to
make it easier, cheaper and faster for embedded generators above 5 MW – including
cleaner energy systems such as co- and tri-generation and solar PV – to connect to the
national electricity grid. The rules were proposed by ClimateWorks Australia, the
Property Council of Australia and Seed Advisory, and benefit consumers by reducing
the time and expense of connecting embedded generators and encouraging the
efficient adoption of embedded generation. This current report assesses the extent to
which distribution network service providers (DNSPs) have implemented these new
rules.
Assessment of compliance
The initial assessment of compliance in November 2014 found that only half of the
DNSPs had reached a reasonable level of compliance. At that time, none were fully
compliant, although one came close to full compliance and several more were
constrained by confidentiality and data availability issues. However, following this
assessment and engagement with DNSPs, almost all are now providing the required
information and processes to help embedded generation applicants connect systems
to electricity networks” (see ‘before and after’ chart overleaf). It is clear from the
review that better regulatory monitoring and oversight is needed.
Review of model connection agreements
The project included a review by Herbert Smith Freehills of the model connection
agreements required to be provided by DNSPs under the new rules. The review
uncovered no non-compliance with the rules, but did identify many areas where some
model agreements favour DNSPs, and the report provides detailed guidance for
connection applicants looking to negotiate these agreements.
Review of technical standards
The project also included a review by Wood and Grieve Engineers of the technical
elements of DNSPs’ published materials, which found that even within jurisdictions,
distributors take materially different approaches to the standards that are to be
applied by project proponents.
Areas for further work
Finally, the project identifies areas for further improvement in the process, including
among others:
 the issue of how best to treat embedded generators who are required to pay
for new infrastructure which is later used by others;
 the wide variability of costs associated with connection applications in
different distribution networks;
 the potential to standardise technical standards across distribution networks.
Further information
The full report is available via the ClimateWorks, Property Council and Seed
Advisory’s websites. For further information please contact Patricia Boyce on +613
9658 2352.
The new rules include requirements relating to enquiry forms for connection applications, information packs for
prospective applicants, and provision of registers of completed connections. There are 44 separate requirements.
We have scanned each DNSP’s website and recorded one point for every individual requirement met. The results
of our preliminary assessment in November 2014, and subsequent assessment in March 2015 are below.
Measured DNSP Compliance, November 2014
Measured DNSP Compliance, March 2015